Verdant Rock Limited, a Bermuda-based Class 3B insurer and financial guarantor focused on emerging markets, has closed a 30% quota share reinsurance treaty with a panel of global reinsurers. The panel carries an average financial strength rating of A+ from either AM Best or S&P, according to the company's announcement. This treaty marks a significant milestone for Verdant Rock, which received its Class 3B insurance license from the Bermuda Monetary Authority less than a year ago.
The treaty covers Verdant Rock's portfolio of irrevocable, unconditional, and on-demand financial guarantees on private corporate, structured, and project finance exposures across emerging markets. By sharing 30% of risk with highly rated reinsurers, Verdant Rock strengthens its balance sheet, diversifies its capital base, and enhances scalability for future growth. This arrangement provides an additional layer of security for every guarantee the company issues, as the reinsurers have undergone thorough due diligence on Verdant Rock's underwriting framework and governance.
Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock, commented, "Securing a reinsurance panel of this caliber, rated A+ on average, at this stage of our development is a strong validation of our underwriting framework and our approach to governance. Every guarantee Verdant Rock issues now carries an additional layer of security from counterparties that have spent time understanding and believing in what we are building. We are grateful to each panel member for their confidence in us."
Verdant Rock provides Basel and ICS-family Solvency regimes compliant, investment-grade financial guarantees on private credit exposures in emerging markets. These guarantees are designed to qualify as eligible credit protection under Basel and major insurance solvency regimes for banks, insurers, and institutional investors globally. The company focuses on private liabilities and does not cover sovereigns, municipalities, or provinces. Its remit includes bonds and loans issued by emerging market corporations and banks, structured financings, asset-backed (ABS) and mortgage-backed (MBS) exposures in securities or loan format, and project finance.
The reinsurance treaty comes as emerging markets face growing demand for credit enhancement solutions. Financial guarantees can help mobilize private capital by transferring risk and improving the credit quality of underlying exposures. For institutional investors subject to stringent regulatory capital requirements, guarantees that qualify as eligible credit protection can reduce capital charges and increase lending capacity. Verdant Rock's ability to secure A+ rated reinsurance may enhance the credibility of its guarantees and make its products more attractive to counterparties.
The company currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The new reinsurance treaty could support future rating upgrades and expand Verdant Rock's capacity to underwrite larger or more complex transactions. As emerging markets continue to require infrastructure and corporate financing, insurers like Verdant Rock that can provide reliable credit protection may play a critical role in bridging funding gaps.
This announcement is for information only and not an offer or solicitation to buy or sell any security, insurance product, or financial guarantee. Forward-looking statements are not guarantees of future results. A credit rating is not a recommendation to buy, sell, or hold any security and may be subject to revision, suspension, or withdrawal at any time by the assigning rating agency.
